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Vitalhub Corp (2)
Symbol VHI
Shares Issued 36,140,988
Close 2021-08-24 C$ 3.14
Recent Sedar Documents

Vitalhub loses $523,400 in Q2 2021

2021-08-24 18:58 ET - News Release

Mr. Dan Matlow reports

VITALHUB INCREASES Q2 2021 REVENUE TO $5.8M WHILE CONTINUING TO IMPROVE ON FINANCIAL METRICS ACROSS THE BUSINESS

Vitalhub Corp. has filed its interim condensed consolidated financial statements, and management's discussion and analysis report for the three and six months ended June 30, 2021, with the Canadian securities authorities. These documents may be viewed under the company's profile on SEDAR.

When asked to comment on the results, Vitalhub chief executive officer Dan Matlow said: "With the constraints of COVID-19 in the background, we are very happy with the progress of the company over the last four quarters. With the acquisition of Alamac Ltd., our annual recurring revenue (ARR) now exceeds a run rate of $21-million. Notably, over the last four quarters the company has added over $3.4-million in ARR organically. This represents a 46-per-cent growth in organic annual recurring revenue over and above the $8.8-million annual recurring revenue purchased through acquisitions. The company is approaching our target of 20 per cent adjusted [earnings before interest, taxes, depreciation and amortization], with 18 per cent adjusted EBITDA reported in Q2 2021. We continue to work on integrating our acquired companies to generate increased synergies both from a revenue and cost perspective."

The company will be holding a conference call via Zoom on Aug. 25, 2021, at 9 a.m. EST hosted by CEO Mr. Matlow and chief financial officer Brian Goffenberg, with a question-and-answer session to follow.

Second quarter 2021 financial highlights:

  • Revenue of $5,792,182, an increase of $3,043,287 or 111 per cent from the comparative period in the prior year;
  • Gross profit as a percentage of revenue for Q2 2021 was 77 per cent compared with 73 per cent in Q2 2020;
  • ARR (non-IFRS measure) grew by $3,825,678 ($501,835 or 3.15 per cent organic and $3,323,843 or 20.86 per cent acquisition) to $19,757,306, a 24-per-cent sequential growth in Q2 2021 versus Q1 2021;
  • Net (loss) of ($523,400) compared with net income of $179,467 from the comparative period in the prior year;
  • EBITDA (non-IFRS measure) of $157,114 compared with $705,901 from the comparative period in the prior year;
  • Adjusted EBITDA (non-IFRS measure) of $1,053,686, or 18 per cent of revenue, compared with $754,262, or 27 per cent of revenue, from the comparative period in the prior year;
  • Cash on hand at June 30, 2021, was $21,043,380 compared with $23,391,946 as at Dec. 31, 2020;
  • Cash provided by operating activities increased by $2,133,665 from $24,543 in Q2 2020 to $2,158,208 in Q2 2021;
  • Including the acquisition of Alamac subsequent to the quarter, Vitalhub's ARR now stands at $21,057,306.

Second quarter 2021 business highlights:

  • The company continues to increase its international presence and cross-sell products with additional licensing deals won in Q2 2021 as follows:
    • Licensing of Intouch with Health's digital health platform with University Hospitals Coventry and Warwickshire NHS Trust;
    • Multiyear large-scale licensing transaction of Intouch with Health's Synopsis product with Hampshire Hospitals NHS Foundation Trust;
    • Five-year licensing contract of Vitalhub's Treat product to Family Service Toronto;
    • Multiyear licence agreement of Intouch with Health's patient flow solution with Wrightington Wigan and Leigh Teaching Hospitals NHS Foundation Trust;
    • Multiyear licence agreement of Intouch with Health's digital health platform with University Hospitals Dorset NHS Foundation Trust to support new NHS initiative;
    • Expansion of Transforming Systems' Shrewd products at east of England region of the National Health Service.
  • Subsequent to the quarter, the company acquired all of the issued and outstanding shares of Alamac Ltd. Alamac is a United Kingdom-based company, and provides technological and advisory solutions that assist health care organizations across the NHS.

In addition, Vitalhub is pleased to announce that it has entered into a debt settlement arrangement with various individuals in settlement of debts owed of $268,994.25 in connection with the earn-out provision as part of the acquisition of Transforming Systems Ltd. Further details of the acquisition are available in the company's Aug. 31, 2020, press release. Under the terms, the company will issue 88,888 common shares of the company at a price of $3.026 per share.

About Vitalhub Corp. -- software for health and human services providers designed to simplify the user experience and optimize outcomes.

Vitalhub provides technology to health and human services providers, including hospitals, regional health authorities, mental health, long-term care, home health, community and social services. Vitalhub solutions span the categories of electronic health record (EHR), case management, care co-ordination, patient flow and operational visibility, and DOCit mobile apps.

The company has a robust two-pronged growth strategy, targeting organic growth opportunities within its product suite, and pursuing an aggressive mergers and acquisitions plan. Currently, Vitalhub serves 275 plus clients across Canada, United States, United Kingdom, Australia, Qatar and Latvia. Vitalhub is based in Toronto, Canada, with an offshore development hub in Sri Lanka. The company is publicly traded on the TSX Venture Exchange under the symbol VHI.

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